Retail exchange traded funds (ETFs) are lower in early trading on reports that consumer confidence is at its lowest point on record this month.
The consumer confidence index plunged to 38, down from 61.4 in September and far below expectations of 52, reports Christopher S. Rugaber for the Associated Press.
It’s the lowest reading since 1967, the year consumer sentiment began being tracked.
It’s hardly a good time for pessimistic consumers, as the holiday shopping season is just around the corner.
The SPDR S&P Retail (XRT) is down 41.4% year-to-date.
The S&P Case-Shiller Home Price 10-City Index also posted a record drop of its own, by 17.7% year-over-year and 1.1% for the month of August. It’s the 25th straight decline for the index. The 20-city index fell 16.6% year-over-year and 1% in August.
The SPDR DJ Wilshire REIT (RWR) is down 45.5% year-to-date.
All eyes are on Washington this week as the Federal Reserve kicks off a two-day meeting, and many analysts expect that it will culminate in another round of rate cuts. The official decision will be announced at 2:15 p.m. PT tomorrow.
The big question isn’t if, but how much? Most seem to be betting that the key rate will be slashed to 1%, reports Jeannine Aversa for the Associated Press. However much the rate is cut, the prime rate would fall by a corresponding amount. The prime rate currently is 4.5% and is used to peg home equity loans, certain credit cards and other loans with floating rates.